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The fiscal and taxation reforms will be more than ever necessary in China to ensure that growth becomes more inclusive. So far, China has had a major success in reducing the poverty. But additional tax reforms will be needed to reduce further inequality in disposable income and across regions, as well as to help reduce the rural-urban divide.

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The OECD and China are building a new partnership based on growing collaboration in key policy areas: from social inclusion to urbanisation; from education to green growth; from energy efficiency to corporate governance and taxes, said OECD Secretary-General.

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China has made tremendous progress toward achieving inclusive growth, but major reforms are needed to ensure a fourth decade of rapidly converging living standards and a greener economy, according to the OECD’s latest Economic Survey of China.

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China enjoys a more stable and balanced growth and is now definitely on course to become the world’s largest economy around 2016. But major reforms are still needed to ensure a fourth decade of rapidly converging living standards and a greener economy, said OECD Secretary-General.

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The Secretary-General, Mr. Angel Gurría, was in Beijing to attend the China Development Forum, to present the third OECD economic survey of China and to hold bilateral meetings with key representatives of China's authorities, business and academic world.

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The main features of China’s current sub-national finance arrangements date back to the 1994 tax reform. China has a multi-level government structure that shares national tax revenues through a system of tax sharing and transfers, and divides spending assignments and responsibilities.

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Sound and transparent corporate governance policies will play a crucial role in reform initiatives and capital market development in China, as well as attracting the international investors required to sustain China’s long term economic growth. In order to support the these reforms, the OECD shares its experiences in the area of corporate governance with China through regular policy dialogue exchanges.

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Production processes have become global and markets more integrated as trade costs have fallen on the back of technological progress and trade and investment policy reforms. We can no longer base policy decisions on conventional trade statistics that report the gross value of products and services each time they cross borders. Instead, we need to measure how much and where value is added, said OECD Secretary-General in Beijing.